Sep 2006 Financial News

Sagicor General rated A-Excellent by A.M. Best

Sep 14, 2006

A.M. BEST Co. has affirmed the financial strength rating of A- (Excellent) of Sagicor General Insurance Inc. (Sagicor General, Bridgetown, Barbados). The rating outlook is stable.

The rating reflects Sagicor General s solid risk-adjusted capitalisation, profitable operating performance, prudent underwriting leverage and vast market presence in the Caribbean.

Sagicor General is one of the largest property/casualty insurers in Barbados with a presence that extends into Dominica, St. Lucia, St. Vincent and Trinidad and Tobago. A disciplined underwriting approach and appropriate risk pricing have enabled the company to achieve consistently favorable underwriting results. As a Caribbean underwriter, Sagicor General is exposed to frequent and severe weather-related events; however, the company mitigates this exposure through a sound reinsurance programme, territorial diversification and appropriate pricing of its products. In addition, Sagicor General benefits from being a member company of Sagicor Financial Corporation, one of the largest financial service organisations in the Caribbean.

Partially offsetting these positive rating factors are the increased frequency of hurricane activities in the region and the increasingly competitive insurance environment in the region. Increasing hurricane activity represents significant risk exposure to Sagicor General and other insurers operating in the Caribbean, as evidenced by losses the company suffered in the Cayman Islands from Hurricane Ivan. To mitigate future losses from similar events, Sagicor General purchased additional catastrophe reinsurance protection and lowered net retention of its catastrophe program. Current reinsurance protection and capitalisation is fully supportive of Sagicor General s rating. Furthermore, Sagicor General operates in a challenging Caribbean insurance market, in which competition among insurers has become increasingly competitive to gain market share.


Source:
The Barbados Advocate
Thursday 14th September, 2006

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